Читать книгу Mutual Funds For Dummies - Eric Tyson - Страница 67

The goals discussed in this chapter — creating and maintaining an emergency fund, retirement, buying a home, higher education funding, and so on — are traditional and common goals that many folks have. Of course, you may have some other dreams and aspirations. And those need not be that specific. For example, maybe you’d like to take some greater risk with some of your money because “you only live once” (also known as YOLO). I observe that line of thinking with a number of young adults.

As a constant observer of the mass media, the YOLO crowd has plenty of interests including such vehicles as meme stocks, options trading, cryptocurrencies, NFTs, cannabis stocks, and more. What all of these have in common is that you won’t find any recommended funds in this book that specialize in these either because they’re way too risky and/or disallowed by the Securities & Exchange Commission in mutual funds. As a better long-term alternative, I encourage you to find out about the higher-risk stock funds discussed in this book.

I strongly recommend that you limit such high-risk investments to a small or modest portion of your portfolio, such as 5 to 10 percent. Also, be honest with yourself about the risks you are taking and the possibility with really-high-risk investments of losing your entire investment. People are lured into such investments by dreaming about the potential profits if they are right, but they often fail to realistically consider the downside if they are wrong. Last but not least: You should never ever put money that you might need for an emergency (such as losing your job, suffering medical problems, being hit with unexpected home or auto repairs, or having a family emergency) in these high-risk investments.